The Zouk power plant in Kesrouan. (Credit: P.H.B./Photo d'archives)
Caretaker Energy and Water Minister Walid Fayad signed an memorandum of understanding with Iraqi Oil Minister Hayan Abdelghani on Friday to renew Baghdad's supply of fuel to Lebanon.
The deal increases the total quantity of Iraqi fuel from 1.5 million tons to 2 million tons, and extends the agreement for one more year.
Concluded in July 2021 and implemented the following September, the initial agreement with Iraq was for a quantity of 1 million tons of fuel oil spread over a period of 12 months.
The fuel oil produced by the Iraqi state company State Oil Marketing Organization is not, however, compatible with Lebanon's power plants. As part of the agreement, Lebanon could swap the Iraqi fuel oil with fuel compatible with its plants.
The deal was then renewed in August 2022 with an increase in fuel supply.
The agreement aims to meet part of Lebanon's fuel needs for its public electrical grid. Iraq is the only source of fuel for Lebanon's Deir Ammar and Zahrani power plants at a time when the country is struggling with a crippling economic crisis.
State electricity supplier, Électricité du Liban, is only able to provide a few hours of power a day.